Trade receivable processing method and apparatus

ABSTRACT

A processing method and apparatus is provided, such as a clearinghouse, for tracking receivable and payable information, matching, negotiating, trading, providing working capital financing, and settling payments for accounts payable and accounts receivable between trading partners and finance providers.

RELATED APPLICATIONS

This application is a continuation of U.S. application Ser. No.10/085,977, filed Feb. 28, 2002, and entitled “Trade ReceivableProcessing Method and Apparatus,” which claims the benefit of U.S.Provisional Application Ser. No. 60/224,706, filed Aug. 11, 2000, bothof which are incorporated herein by reference.

TECHNICAL FIELD

The present invention relates generally to a trade receivable processingmethod and apparatus, and in particular, to a method and apparatus suchas a clearing center for performing one or more services related totracking summary receivable and payable information, and matching,negotiating, trading, financing, and settling payments for accountspayable and accounts receivable between trading partners and financeproviders.

BACKGROUND OF THE INVENTION

Typically, as shown in FIG. 1, upon the receipt and initial processingof a purchase order (typically paper), the seller of the goods (CompanyA) ships the goods to the buyer/customer (Company B), and mails to thebuyer (Company B) an invoice. Terms of payment are stated on theinvoice, with mailing instructions—typically to a lockbox address ifCompany A has sufficient volume. Costs incurred by Company A to invoiceinclude printing, envelopes, and mailing. Costs to Company B includecreating and printing the check, envelope and mailing costs.

The lockbox bank, on behalf of Company A, receives the mail sent to thelockbox, opens the envelopes, sorts out the non-invoice letters, sortsinvoices, deposits the checks, and sends to Company A the non-invoiceletters. In addition, the lockbox bank sends to Company A informationregarding invoices and the checks it received and deposited (thisinformation can be sent either electronically or manually). Company Amust then compare the data received from the lockbox bank with its ownrecords (accounts receivable ledger), and determine/resolve paymentdiscrepancies (different payment amounts received), as well as resolvedisputes and slow-pay situations. A significant amount of the time spentby Company A's receivable department is resolving these paymentdiscrepancies.

Depending on the industry, it is not uncommon that 5-10% of the paymentsreceived do not match the invoiced amount, and 2-4% cannot be easilyresolved and reconciled (i.e., are easily identifiable as an agreed uponpayment discount, volume rebate, etc.). It is very common that thedifficult reconciliation problems are the result of communication issuesbetween Company B, the sales force of Company A and its invoicingdepartment, or with return goods. Unresolved items may be outstandingfor 90 days or longer before being reconciled, thus the receivableportfolio statistics for many companies are distorted.

If Company A wishes to borrow money against its accounts receivable, orwishes to securitize its accounts receivables, a lender or investor willspend a significant amount of time analyzing the difference between theinvoiced amounts and the actual payments received, and focus on theunusual or difficult reconciliation situations. If there are a lot ofdiscrepancies that either cannot be predicted, or take a long time toresolve, the lenders and investors will require additional collateral,or a higher yield to offset the uncertainty. In addition, legal steps toprotect the financier or purchaser are time consuming.

Currently, there is not a clearinghouse process that accomplishes aprocess of matching and reconciliation of payables and receivablesinformation flow between trading partners, allows and facilitatescommunication between companies regarding specific invoice agreementsand adjustments prior to payment, as well as creates a method to financethe payment flows, taking into account legal and cash domain issues.

Nevertheless, large and middle market companies are struggling toefficiently manage their working capital, while trying to reduceborrowing costs, banking fees, and treasury management costs (overallreceivable and payable management costs). Current providers oftraditional treasury management products continue to lower standardtransaction costs, for payment remittance and receivable collectionactivity, but this does not address the financing inefficiencies in thecurrent method.

Many companies have funding programs in place based on secured,borrowing bases against receivables, or have sold or securitized theirreceivables in the capital markets. The continuing growth in thesecuritization of trade receivables will be dependent upon the abilityto improve the efficiency of disseminating trade receivable informationand controlling, and/or consolidating, payment methods. In addition, thefactoring industry would also be positively and profoundly affected by amore efficient method, such as a clearing center to trade receivableinformation and cash-flows.

Likely results of a clearinghouse for trade receivables would be morestandardized financing documentation and structures, more efficientlegal and operational segregation of cash flows, as well as efficienciesthat will result in better financing terms for secured borrowers,sellers of receivables, and capital market issuers alike.

SUMMARY OF THE INVENTION

The present invention provides a method and apparatus, such as aclearing center, or central repository of electronic data, for thereconciliation of payable and receivable information, settlement oftrade obligations, the financing of receivables, and trading of accountreceivables and derivations.

One embodiment of the present invention is directed to a method ofutilizing an Internet (i.e., decentralized global computer network)based receivable clearinghouse for facilitating a transaction involvinginvoice information, replacing the need for a separate invoice to besent between trading partners. The invoice information is sentelectronically to the receivable clearinghouse by a first participant.The clearinghouse stores the invoice information and generates anelectronic version of the invoice. The invoice information is providedor made available by the clearinghouse to a second participant on behalfof the first participant. The electronic invoice information includesone or more payment terms wherein one term requires payment of theamount due under that specific invoice be sent to the receivableclearinghouse. Payments by the second participant are received at theclearinghouse and recorded. The first participant is credited with thereceipt of the payment.

A further aspect of the present invention provides a process formodifying the one or more payment terms. A confirmation (formalagreement with like terms an obligations of the invoice) of the specificinvoice can be provided by the second participant, and sent to theclearinghouse wherein the clearinghouse forwards the confirmation to thefirst participant. In response to the confirmation, one or more of thepayment terms may be modified, i.e., discounted amount, or extendedpayment terms, etc.

Another aspect of the present invention provides for daily netsettlements and reporting between the participant and the receivableclearinghouse covering all of its payables and receivables due to/fromother participants.

Yet another further aspect of the present invention provides for amarketplace for the offering of financing or purchasing of receivablestracked by the clearinghouse. The offers can be predetermined orconfidential, e.g., “blind,” arrangements extended to participantsowning receivables.

Other features and advantages of the invention will be apparent from thefollowing specification taken in conjunction with the followingdrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a simplified flow diagram of a prior art standard tradereceivable payment process;

FIG. 2 is a simplified flow diagram of a business transaction utilizinga trade receivable clearing process in accordance with the presentinvention; and,

FIG. 3 is a simplified block diagram of the trade receivable clearingprocess depicted in FIG. 2.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

While this invention is susceptible of embodiments in many differentforms, there is shown in the drawings and will herein be described indetail a preferred embodiment of the invention with the understandingthat the present disclosure is to be considered as an exemplification ofthe principles of the invention and is not intended to limit the broadaspect of the invention to the embodiment illustrated.

An embodiment of a business transaction utilizing a receivableclearinghouse 10 in accordance with the present invention is shown inFIGS. 2 and 3. Preferably, the clearinghouse 10 is Internet (i.e.,decentralized global computer network) based and capable of interactingwith several participants including suppliers, purchasers, and financeproviders. Specifically, the participants share data related to tradeobligations created during the transaction of business to businesscommerce, and changes or corrections to the trade obligations. Theparticipants enter into contractual relationships with regard to theactual settlement and financing of these obligations. Preferably, theseagreements are standard between the clearinghouse and all otherparticipants including finance providers and prospective investors intrade receivables.

Turning to FIG. 3, the clearinghouse 10 preferably includes a fundssettlement apparatus 12, such as a receivable trust, utilized by theclearinghouse and all its participants. Cash settlements between theclearinghouse 10 and its participants preferably occurs daily. In anembodiment, several types of participants utilize the clearinghouse 10such as receivable owners, receivable debtors, and financial providers.

The receivable owner, e.g., supplier 14, agrees to provide summary dataon its receivables and settle certain of its trade receivables throughthe clearinghouse 10. Similarly, the receivable debtor, e.g., purchaser16, has agreed to provide summary data on its payables and settle itstrade obligations via the clearinghouse 10.

As shown in FIG. 2, two additional participants can include thesupplier's finance provider 18 and the purchaser's finance provider 20.In an embodiment, besides providing financing to the supplier 14, thesupplier's finance provider 18 is a financial institution that agrees totake on the performance risk of the receivable owner 14 for certainrepresentations and warrants for which it agreed to when becoming aclearinghouse participant. In addition, the supplier's finance provider18 may act as the representative of the receivable owner 14 when thereceivable owner trades through a clearinghouse trade receivablemarketplace 22.

Likewise, in an embodiment, the purchaser's finance provider 20 is afinancial institution that, along with providing financing, agrees totake on the performance risk of the receivable debtor 16 for certainrepresentations and warrants for which it agreed to when becoming aclearinghouse participant. Moreover, the purchaser's finance providerdebtor sponsor 20 may act as the representative of the receivable debtor16 when the receivable debtor executes a trade through the clearinghousetrade receivable marketplace 22.

In an embodiment, one or more other financial institutions 24 may offerto provide financing to the receivable owner 14, as well as coordinatecashflow to and from the clearinghouse 10 on behalf of the participants.Such financing can be provided, for example, through the purchase of thedebt obligations of the purchaser 16 owing to the supplier 14, orthrough the lending of funds to the purchaser or subsequent ownersecured by the purchaser obligations. They may also provide currencyexchange products and services. The financial institutions 24 preferablyagree to the legally binding transfer of ownership and assignments ofsecurity interests as reflected in the records of the clearinghouse 10.

The clearinghouse trade receivable marketplace 22 provides a forumwithin the clearinghouse 10 that allows financial institutions 24, ontheir own behalf as well as on behalf of the current owner of areceivable, to buy or sell an obligation of the purchaser 16 to make apayment under a specific receivable to other clearinghouse participants.

Preferably, a contractual relationship is a prerequisite to aparticipant's participation within the clearinghouse 10. Participantsagree to resolve receivable and payable disputes through theclearinghouse 10, track their resolution, and be bound by execution of adigital signature. The participants further agree to follow predeterminereporting and funding procedures. These procedures can include: summaryinformation on receivables to be settled through the clearinghouse 10;notification of receivable ownership/interest changes; and, notificationof debit/credit balances in the funds settlement apparatus 12.

In an embodiment, each participant acknowledges the ability of theclearinghouse to track and grant security interests in receivables andthe funds in settlement apparatus 12 on behalf of the supplier 14, orthe current receivable owner, if different. The transfer of ownership inthe receivables and payment obligations, and the granting of securityinterests are authorized by the execution of an electronic signature.The supplier 14 and purchaser 16 are preferably bound to providepredetermined information on receivables and payables to each otherthrough the clearinghouse 10. The receivables and payables informationare matched and tracked through the clearinghouse 10, preferably via thedata management and reporting module 28. The supplier 14, or subsequentowner of the receivables, agrees to accept payment for the receivablesthrough the funds settlement apparatus 12, e.g., the receivable trusteetransfers funds from the receivable debtor 16 designated accounts to thereceivable owners designated accounts at the receivable trust 12.Similarly, the receivable debtor 16 will make a payment of all of itspayables to a designated account at the receivable trust 12.

The supplier 14 (receivable owner) and purchaser 16 (receivable debtor)electronically communicate with the clearinghouse 10 the status ofreceivables and payables. Preferably, these electronic communications toand from the clearinghouse 10 are legally binding contractualobligations. The status of a clearinghouse item may be: no-match, match,approved release date, confirmed (i.e., receivable debtor will pay thestated amount on the stated date), re-confirmed (i.e., the receivabledebtor's obligation is backed or guaranteed by a financial institution),etc. In an embodiment, the payment date is the actual date payment ismade. Preferably, the funds settlement trust 12 has the ability to netpayments of a participant's receivable and payable accounts. These netpayments are preferably executed on a daily basis.

Upon the confirmation of an invoice amount (when the receivable debtor16 specifically agrees to pay a certain amount on a certain date), thereceivable debtor agrees that the obligation thereafter is absolute,binding, with no rights of set-off. In addition, the receivable debtor16 acknowledges that the receivable owner 14 may sell, assign, pledge,and transfer ownership within the receivable clearinghouse 10 withoutthe consent or knowledge of the receivable debtor. The supplier 14, or asubsequent receivable owner, can offer the cashflow obligations of thereceivable debtor 16 to other participants of the clearinghouse 10 on aconfidential “double-blind” basis, i.e., confidential regardingunderlying business transaction as well as the supplier 14 and theprospective receivables purchaser, or receivable owner, through thereceivable trading apparatus 22.

The receivable owner 14 and financial provider 18 utilize standarddocuments for financing receivables. The receivables are financed by thepurchase of the receivables, the purchase of an ownership interest inthe receivables or a pool of receivables, or the pledging of a securityinterest. Both the receivable owner 14 and the financial provider 18agree to accept the risk of clearinghouse bookkeeping regardingownership and security interest issues. All payments for financing areaccepted through book entry debits and credits with the funds apparatus12 based on the reporting of the clearinghouse 10. In an embodiment, thereceivable owner 14 grants access, via the clearinghouse 10, to financeproviders, with respect to information pertaining to any receivable forwhich the financial provider 18 is interested.

Information pertaining to the receivables and payment data istransmitted between the participants and the clearinghouse 10,preferably via data management and reporting 28, on a daily basis. Thetype of information transmitted depends on the participants involved.

Receivable Owner and Clearinghouse

The supplier 14 sends information on new and existing receivables to theclearinghouse 10. The information sent regarding new receivables mayinclude the purchaser 16, amount, invoice number and date due. Theinformation sent pertaining to existing receivables may involve any ofthe following: changes requested by the purchaser 16 and accepted ormodified; new or revised clearinghouse terms; or, confirmation of thesale of a receivable through the trade receivable marketplace 22. Thesupplier 14 or a subsequent receivable owner 14 also sends confirmationof settlement to the clearinghouse 10 wherein deposit or withdrawal fromthe funds apparatus 12 is confirmed.

The receivable owner (whether the original supplier 14 or a subsequentreceivable owner) can accesses the clearinghouse marketplace 22 via atrading web-page. At the web-page, the receivable owner can search forreceivables to purchase; post receivables to sell; and, inform theclearinghouse 10 of an offer.

The information sent or made available by the clearinghouse 10 to areceivable owner 14, such as the supplier 14, can include: projectedfuture clearinghouse credits; receivable status, i.e., no-match, match,approved, release-date; and, confirmations, reconfirmations, and changesnoted or requested by the purchaser 16 related to the current owner orsponsor.

The clearinghouse 10 sends or makes available the receivable owner 14 adaily settlement report. The report contains an itemized net payment dueto or from receivables and payables, and the sale of any receivables;and, cash delivery failures on past settlements.

Receivable Debtor and Clearinghouse

The clearinghouse 10 sends or makes available to the receivable debtor16 information on new invoices which the clearinghouse received fromreceivable owners 14, e.g., seller, amount, purchase order, productdescription, terms, clearinghouse terms (discounts offered foraffirmations, confirmations, and reconfirmations). In an embodiment, thereceivable debtor 16 compares electronically this information with itsown accounting system information regarding payables.

The receivable debtor 16 sends to the clearinghouse 10 information onexisting payables invoices, such as: affirmations (full or partial);confirmations; and requests for reconfirmation (by receivable debtorsponsor or a specific financial provider). Also sent is informationrelated to changes noted or requested by receivable debtor 16, thecurrent owner or sponsor.

Similar to the information sent or made available to the receivableowner, the clearinghouse 10 sends or makes available the receivabledebtor 16 daily settlement reports. The report contains an itemized netpayment due on its payables, net of any awards it is to collect if it isalso a receivable owner 14, and cash delivery failures on pastsettlements.

The receivable debtor also sends information pertaining to theconfirmation of settlement to confirm payments from the funds apparatus12.

Financial Provider and Clearinghouse

The clearinghouse makes available daily listings of invoices andinformation or receivable debtor obligations for those the receivableowner 14 had provided access to the financial provider 24. Theselistings are categorized by receivable owner 14, receivable debtor 16,and any type of ownership interest guaranteed to the finance provider.The listing by receivable owner is further defined by existing (by typeof clearinghouse terms), new additions, and changes to existinginvoices. In an embodiment, information such as listings can be madeavailable by the clearinghouse on a global basis by using, for example,the Internet.

The financial provider 24 notifies the clearinghouse 10 of settlementdeposit instructions, such as, payment instructions on receivablepayments and loan payment instructions to the funds apparatus 12.

The financial provider 24 can access the clearinghouse marketplace 22via a web page for trading receivables. At the web page, the financialprovider 24 can search for receivables to purchase, post offers to sellcertain receivables, notify clearinghouse of offers and the acceptanceof offers. The financial provider 24 also receives a daily settlementreport issued by the clearinghouse 10.

Receivable Owner Sponsor and Receivable Debtor Sponsor and Clearinghouse

The clearinghouse 10 provides a daily report to the receivable debtorsponsor 20 and the receivable owner sponsor 18. Both sponsors areprovided information concerning discrepancies relating to the receivableowner or receivable debtor for which it sponsors. The receivable debtorsponsor is further provided with information concerning reconfirmationrequests.

In an embodiment, the present invention provides an Internet basedclearing center 10 (“Rclearing.com”) for tracking, funding, trading andsettlement for account receivables, both domestic and international.FIGS. 2 and 3. The Internet based clearing center 10 creates anenvironment for account payable and receivable processes thatsignificantly lowers traditional processing costs, and allows for moreefficient and cost effective financing programs.

Preferably, upon the receipt and initial processing of a purchase order(manually or via Internet, ultimately), and shipping of the goods, thesupplier 14 sends new invoice data to Rclearing.com 10 electronically ona daily basis. The invoice information is received by a data repository26 and Rclearing.com 10 makes available the invoice information to thepurchaser 16 on behalf of the supplier 14 via the Internet (email or/andthrough access to Rclearing.com homepage). Terms of payment are providedin the data, with all payment instructions stating that all paymentsmust be made to “Rclearing.com, Inc.”, as nominee for the owner of thereceivable (initially supplier 14) via Rclearing's Receivable TrustAccount (Preferred) ACH/direct debit (recommended), wire transfer orcheck (to a lockbox owned by Rclearing, Inc.). The purchaser 16 haspreviously agreed that the payments due under “Rclearing.com payables”may be (or have been) assigned to a third party. But in any case, allpayments by the purchaser 16 are to be made to Rclearing.com 10. Inaddition, within the electronic data the purchaser 16 may be given theoption for a discount or extended payment terms, to confirm the exactdollar amount and date of payment, and waive all rights to additionaladjustments or set-off. The size of the discount given by the supplier14 to the purchaser 16 is negotiable, depending upon the dollar amountof the invoice, the date of payment, as well as the credit quality ofthe confirming entity (if someone in addition to the purchaser 16confirms the payment as well, i.e., receivable debtor sponsor 20).

The purchaser 16, individually or with a third party (bank or insurancecompany), has the option of confirming the invoiced amount, and agreeingto the payment terms (date and amount) in order to receive the agreedupon discount or payment terms on the payment amount.

The supplier 14 may continue to pledge or assign its account receivable,whether or not the purchaser 16 accepts the terms of the “confirmationdiscount.” With the payments from the purchaser 16 required to gothrough Rclearing.com 10, and with the ability to easily create aconfirmation process for some or all of the invoiced amounts, thesupplier 14 will, most likely, receive better terms on its financingfrom suppliers finance provider 18. Under this process, payments areless volatile, and cash receipts are easily segregated away from thesupplier 14, if necessary.

All payable and receivable information is transferred directly to/fromthe seller's (supplier 14) and the buyer's (purchaser 16) MIS systems(including accounts payable and accounts receivable systems) toRclearing.com 10. Rclearing.com will provide standard interfaceapparatus for all major vendors of accounting systems.

A large or small company may join Rclearing.com 10, as either a“receivable participant,” (receivable owner 14) a “payable participant,”(receivable debtor 16), or a “full participant” (both receivable ownerand receivable debtor). The participant will access the Rclearing.comwebsite, and, via a password, allow the transfer of data to and fromRclearing.com and the participant's own systems.

As a “full” or “receivable” participant, all invoicing is done throughRclearing.com 10, via the Internet or through traditional means (if theinvoiced entity is not yet Internet friendly). Rclearing.com alsocollects and reports all confirmations received on invoices (if any).All payments received on receivables (electronic or via lockbox-prior toconvincing payer that participation in Rclearing or electronic paymentsis more beneficial) are through Rclearing.com. Rclearing.com credits theparticipants receivable trust account 12, (funds settlement apparatus)or forwards funds to the participant on a daily basis. If it is a “full”participant, the amount credited to its funds settlement apparatus 12will be netted against amount owed on payables.

As a “full” or “payable” participant, all invoices received fromsuppliers 14, as well as all other payable information is electronicallyforwarded to Rclearing.com 10 (indirectly from the participant as itreceives it, or directly from invoicing company—if it is also a“receivable” participant). The payable is acknowledged, and possiblyconfirmed, by the participant to Rclearing.com giving Rclearing.compayment instructions. Upon availability of funds in the settlementapparatus 12, Rclearing.com will make payments (preferablyelectronically) to the appropriate party, per the terms of the invoiceand confirmation. Daily net settlements and reporting is done betweenthe participants and Rclearing.com.

“Funding Participants,” 18, 20, and 24, who may also be fullparticipants, have the ability to purchase or receive security interestsin the receivables held by Rclearing.com as nominee. Disclosurearrangements are predetermined between the funding participants andspecific other participants.

Upon the request of the participant owning the receivable, confirmed andunconfirmed receivables may be offered by the receivable owner, or itsreceivable owner sponsor to financial participants 24 for funding priorto payment date via the receivable trading apparatus 22. Predeterminedarrangements, as well as independent “blind” offers may be extended bythe owner of the receivable via Rclearing.com, and if accepted, fundedthrough Rclearing.com, and the settlement apparatus 12, the next day.The funding scenarios are many. A funding participant 24 may commit toanother participant in the form of a loan or purchase arrangement, maypurchase receivables as part of building or owning a portfolio ofreceivables, or may offer to purchase only discrete receivables, fromtime to time. All full participants may offer to buy discretereceivables using its sponsor through Rclearing.com on a confidential,no-name basis (blind seller, blind buyer).

Standard legal documentation is preferably executed and binding upon anytype of participant (including funding participant 24, supplier financeprovider 18, and purchaser finance provider 20) for all receivable salesor transfers, and funding arrangements, as a part of becoming aparticipant of the clearinghouse 10 (both the customer and participatingfunding providers). This, in itself, may reduce or eliminate significantlegal costs for many funding arrangements.

While the specific embodiment has been illustrated and described,numerous modifications come to mind without significantly departing fromthe spirit of the invention, and the scope of protection is only limitedby the scope of the accompanying claims.

The invention claimed is:
 1. A method of utilizing a computer networkbased receivable clearinghouse for facilitating a transaction involvinga receivable and corresponding invoice having payable and receivableinformation, the method comprising the steps of: receiving datacomprising the invoice with the payable and the receivable informationfrom a first participant involved in the transaction; generatingelectronic invoice information in response to the invoice received fromthe first participant; transmitting the electronic invoice informationon behalf of the first participant to a second participant, theelectronic invoice including one or more payment terms wherein one termrequires payment of the receivable be sent to the receivableclearinghouse; offering the receivable for sale to multiple thirdparties over a receivable marketplace associated with the receivableclearinghouse, the receivable marketplace being accessed by a receivabletrading apparatus; matching a payment with the receivable in thereceivable clearinghouse; reconciling the payment and the receivable inthe receivable clearinghouse; and storing particulars of the transactionin a registry associated with the receivable clearinghouse.
 2. Themethod of claim 1 wherein the payment is for an amount less than invoicecorresponding to the receivable.
 3. The method of claim 2 furthercomprising the steps of: receiving a confirmation acceptance from thesecond participant in response to the confirmation offer from the firstparticipant; recording the confirmation acceptance from the firstparticipant in the receivable clearinghouse; modifying the one or morepayment terms of the receivable in response to the confirmationacceptance; and forwarding the confirmation acceptance to the firstparticipant to modify terms of the receivable.
 4. The method of claim 3further comprising the steps of: receiving a reconfirmation acceptancecomprising a guarantee of an obligation from a third participant, thethird participant being a receivable debtor sponsor; and forwarding thereconfirmation acceptance to the first participant.
 5. The method ofclaim 3 further comprising the step of: transferring ownership andsecurity interests of the receivable utilizing the receivableclearinghouse.
 6. The method of claim 1 further comprising providing aprocess for modifying the one or more payment terms, the stepscomprising: receiving a confirmation offer from the second participant;and forwarding the confirmation offer to the first participant.
 7. Themethod of claim 6 further comprising the steps of: receiving aconfirmation acceptance from the first participant in response to theconfirmation offer from the second participant; recording theconfirmation acceptance from the first participant in the receivableclearinghouse; modifying the one or more payment terms of the receivablein response to the confirmation acceptance; and forwarding theconfirmation acceptance to the second participant to modify thereceivable.
 8. The method of claim 7 further comprising the step of:receiving a reconfirmation offer from a third participant, the thirdparticipant being a receivable debtor sponsor; and forwarding thereconfirmation offer to the first participant.
 9. The method of claim 7further comprising the step of: transferring ownership of the receivableutilizing the receivable clearinghouse.
 10. The method of claim 1further comprising the steps of: facilitating negotiations between thefirst and second participants; and, coordinating fund settlementsbetween the first and second participants.
 11. The method of claim 1further comprising the steps of: providing several types of participantsfor participating in the receivable clearinghouse; the types ofparticipants include: receivable owner, receivable debtor, receivableowner sponsor, receivable debtor sponsor, and financial provider, thereceivable owner providing data on the receivable and being obligated toutilize the receivable clearinghouse to resolve the transaction, thereceivable debtor providing data on the receivable and being obligatedto utilize the receivable clearinghouse to resolve the transaction, thereceivable owner sponsor being a representative of the receivable ownerand being obligated to utilize the receivable clearinghouse to resolvethe transaction on behalf of the receivable owner, the receivable debtorsponsor being a representative of the receivable debtor and beingobligated to utilize the receivable clearinghouse to resolve thetransaction on behalf of the receivable debtor, and, the financialprovider capable of providing financing to any of the participantsthrough utilizing the receivable clearinghouse.
 12. The method of claim1 wherein the first participant being a receivable owner and the secondparticipant being a receivable debtor.
 13. The method of claim 1 whereinthe invoice information received from the first participant comprises:an obligor; an amount; an invoice number; and a due date.
 14. A methodof utilizing a computer network based receivable clearinghouse forfacilitating delivery of invoice information, reflecting a receivable,between a first party and a second party, the first party being a fullparticipant of the receivable clearinghouse, the method comprising thesteps of: receiving the invoice information from the full participant;generating payable information in response to the invoice informationreceived from the full participant; transmitting the payable informationto the second party as an electronic invoice including one or morepayment terms wherein one term requires payment of the receivablerepresented by the electronic invoice be settled through the receivableclearinghouse; offering the receivable for sale to multiple thirdparties over a receivable marketplace associated with the receivableclearinghouse, the receivable marketplace being accessed by a receivabletrading apparatus; matching a payment with the receivable in thereceivable clearinghouse; reconciling the payment and the receivable inthe receivable clearinghouse; and storing particulars of the transactionin a registry associated with the receivable clearinghouse.
 15. Themethod of claim 14 further comprising the steps of: generating a dailynet settlement report wherein the full participant's payables andreceivables are processed, including cross currency exchange mechanisms;adjusting the full participant's account in response to the generateddaily net settlement report; and transmitting the daily net settlementreport to the full participant.
 16. The method of claim 14 furthercomprising the steps of: extending an offer to the full participant forsoliciting funding for the invoice to a financial participant underclearinghouse rules and obligations agreed to by all participants. 17.The method of claim 16 wherein the extending an offer to the fullparticipant is a predetermined arrangement under clearinghouse rules andobligations agreed to by all participants.
 18. The method of claim 16wherein the extending an offer to the full participant is confidential.19. A computer network based receivable clearinghouse for facilitating atransaction involving a participant and an invoice, the invoiceincluding payable and receivable information, the computer network basedreceivable clearing house comprising: a data repository for holding theinvoice information submitted by the participant, the data repositorybeing accessible to a financial institution of the participant underclearinghouse rules and obligations agreed to by all participants; afund settlement apparatus for settling discrepancies involved with theinvoice, the fund settlement apparatus being operably connected to thedata repository wherein daily cash settlements between the clearinghouseand the participant occur; a reconciliation apparatus for reconcilingpayments and matching receivables at the clearinghouse; a datamanagement and reporting apparatus for compiling data received from theparticipant and for reporting data summarized to the participant,including financial participants, the data management and reportingapparatus being operably connected to the data repository; and areceivable trading apparatus for interacting with a receivablemarketplace wherein the receivable represented by the invoiceinformation can be offered for sale to multiple third party participantsof the receivable clearinghouse, the receivable trading apparatus beingoperably connected to the data repository.
 20. The computer networkbased receivable clearinghouse of claim 19 wherein the receivabletrading apparatus receives payments for the receivable represented bythe invoice information that are less than the invoice.